Bitcoin (BTC) retested the $ 30,000 support on January 27 as a day of losses culminating in the breach of the psychologically significant price level.
BTC price gets scared amid GameStop line
Data from Cointelegraph Markets and Tradingview showed that any remaining bullish momentum in Bitcoin dissipated on Wednesday after bouncing on highs close to $ 33,000.
“Another new $ 30,000 test for #Bitcoin,” summed up Cointelegraph Markets analyst Michaël van de Poppe.
Despite pointing to another test of monthly lows, Bitcoin’s price action has hardly surprised regular market participants. For the other trader Scott Melker, it was a case of “waiting to see” until the longer terms were over.
“6 hours seems the same as 4 hours. 12 hours need 10 more hours, so it’s not even worth watching. But the potential is there. Result: no clear sign yet, but it’s worth keeping an eye on if they can increase” I wrote part of a series of tweets on Wednesday.
The resolution of the current price action would, however, be a “moment of truth” for BTC / USD, it said.
As Cointelegraph reported, attention was largely focused on GameStop’s actions throughout the day, after its fortnightly earnings of 700% caught the attention of the media and regulators.
Just as it defied expectations was the AMC cinema chain, which gained 240% in a day after avoiding bankruptcy.
If you don’t like suits, buy $ GME and $ AMC. If you don’t like bankers, buy #Bitcoin
– Cameron Winklevoss (@cameron) January 27, 2021
Hodl on, Redditors’ oath
Bitcoin, despite being a more economical buy-in than at almost any time since Christmas, has failed to keep the spotlight.
“People have maximum interest of $ 40,000 per #Bitcoin, but almost zero interest of $ 30,000 per #Bitcoin. Interesting, ”added Van de Poppe.
Data from the Whalemap on-chain monitoring feature highlighted an area of $ 29,300 as probable support in the event of a $ 30,000 collapse.
Also noteworthy is the Dollar Currency Index (DXY) showing its traditional inverse correlation with BTC with the opening of markets on Wednesday. DXY rebounded to its highest level in almost two weeks, while BTC and the stock retreated.
Meanwhile, cryptocurrency skeptics used the GameStop disaster to pour contempt on Bitcoin and those who argued that decentralized investment was a beneficial phenomenon.
“Attention #Bitcoin HODLers: the only people who will come out with any real gains with #GameStop short-squeeze will be those smart enough to sell. Those who HODL are likely to lose everything. Bitcoin HODLers will have the same fate if they fail to realize their profits on paper “, gold bug Peter Schiff tweeted.
A look at the subreddit used for stock stocks, r / Wallstreetbets, however, showed that user strategies focused on controlling, not selling, their recently profitable stocks – at the expense of unprepared hedge funds.
“Retail reflexivity in action in traditional markets”, commented trader Philip Swift, adding:
“Never underestimate the power of the masses.”
The citations in this article taken from previously published sources have been slightly edited.